How does cashback work in online casinos?

Published: 15-04-22
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    Casino customers often lose. Regularly not getting profit even professionals, not to mention beginners and inexperienced users. Unfortunately for players and fortunately for operators, in the gambling industry, gamblers lose money daily, hourly and even every minute.

    The whole sphere of gambling business is based on this. If the customers of the establishments always won, this industry would disappear before it had time to develop.

    The question arises: How to keep in the casino a visitor who lost his luck?

    You must admit, if you lose a big amount in one institution, there is a great temptation to change it to another club. Superstitious people or customers who doubt the honesty of the casino do this especially often.

    What are operators doing to get unlucky players to come back? They offer them various bonuses.  Perhaps the most effective in this case is cashback. It will be discussed further.

    What is a casino cashback?

    what-is-a-casino-cashback

    Let’s start with the definition of the term: cashback, or cashback (eng. Cashback) – the return to the client of part of the lost money.

    The amount of cashback is calculated by the total amount that the player left in the house. The second parameter is a certain percentage specified in advance by the rules of the promotion.  It may depend on various criteria:

    • User status,
    • Customer activities,
    • Losses and so on.

    For example, the casino returns 15% weekly. The player made a deposit of one thousand dollars, and by the end of the week he had nine hundred dollars left on his balance. He is entitled to the following payout amount: (1000 – 900) * 15% = $15.

    The basic principle of cashback was not invented in gambling. It has been used in the banking industry for many decades. Some well-known banks have made favorable cashback conditions their main “feature”, attracting many customers.

    But cashback in a casino is different from this offer in the financial sector.

    In banks, people are rewarded for using plastic cards and carrying out other transactions. They do not lose money, but spend it in exchange for goods and services. Cashback becomes a pleasant addition for them and an incentive to continue cooperation with the institution.

    In casinos, players who are unlucky lose their funds. Yes, they had fun and gained impressions, but these emotions are hardly positive. For them, cashback is a consolation and an opportunity to continue gamble.

    In other words, in a bank, cashback is a tool for making money, and in a casino, it is a way to partially hedge against a complete loss of a bankroll.

    In the gambling business, cashback appeared before the advent of online-gambling. Many real casinos have long ago returned part of the lost money to customers. This practice has survived to this day, although it cannot be called very common. However, offline, this offer usually applies only to VIPs, and online, this promotion is often valid even for beginners.

    Types of cashback online-casino

    What is casino cashback? There are no unified rules for the promotion in gambling, so each institution can introduce its own conditions.

    It should be noted that the vast majority of operators charge cashback for net losses (eng. Net Losses Cashback). Much less common are promotions, according to which the return is calculated according to other criteria: the amount of deposits, total revenue, or some other parameters.

    Let’s highlight the main characteristics of cashback, according to which it can be conditionally classified:

    • Type of client – Is this promotion for new or regular clients, for all players or VIPs?
    • Frequency – Accrued daily, weekly, monthly or according to some other schedule?
    • Size – What is the percentage of cashback calculation? It can start from 1% and go up to very large figures.
    • Amount – Is there a maximum limit? Often players can not get more than the set amount.
    • Games – Do all games earn cashback? Sometimes it only works on certain slots or is not available on certain models.
    • Units – Cashback paid in real money or bonus credits? In the second case, players can only play on it.
    • Wager – If cashback is provided in the form of bonuses, how many times does it need to be wagered?
    • Compatibility with other promotions – Can players participate in several events at the same time?
    • Often, online-casinos introduce individual cashback terms for players who they consider promising.

    Cashback rules at the casino

    Now let’s take a closer look at some important features of online-casino cashback.

    What is the percentage of cashback?

    Most often, the cashback is in the range of 5% to 20%.  Sometimes it reaches 25% or even 30%.

    Values ​​less than 5% are rare, because such an offer is unlikely to interest customers. However, sometimes new customers can only count on a minimum cashback that does not exceed a couple of percent.

    If the online-casino has a loyalty program with several levels, the cashback increases when the player’s status increases. The difference between the starting value and the maximum cashback can be enormous.

    In which units are cashbacks issued?

    Two main formats:

    1. Cashback is provided with real money. In this case, the customer can use it to play or immediately order a payout.
    2. Cashback comes in the form of bonus credits.  It can also be withdrawn, but first you need to win back these funds.

    If we are talking about the second option, players need to learn the requirements of the wager.  Usually it’s not very hard. It is enough to scroll the cashback several times by placing bets for the required amount.

    However, players should find out in which games they can wager cashback. Sometimes this cannot be done on blackjack, video poker, roulette and other models with a high RTP. Other restrictions may also apply.

    Which games offer cashback? 

    Most often, it does not matter in which games the customer lost money. If the casino has a cashback system, in any case, it receives a refund on the agreed terms.

    But sometimes promotions are arranged, within which cashback is valid only on certain slots.  Usually in this way the institution attracts customers to certain games.

    Is there a maximum cashback amount?

    Not always. Many large online-casinos specify a return percentage and do not limit the payout amount. In fact, the operator is interested in the customer losing as much as possible, and is ready to encourage this by any means.

    However, sometimes maximum limits are set, which is especially important for high rollers. If players are going to play at high stake, immediately clarify this item.

    VIP cashback at online-casino

    The best online-casinos provide VIP clients with cashback on special terms. This is expressed as follows:

    • First of all, the percentage increases.
    • There are usually no maximum limits.
    • The cashback is provided either with real money or bonus funds with a minimum wager.
    • Cashback can be credited frequently or on a flexible schedule.

    In addition, it can be supplemented by other services and promotions.

    Cashback for advanced players

    cashback-for-advanced-players

    First, let’s define who is meant by this definition:

    An advantage player is a casino customer who plays for the result, to achieve which he uses any available means.

    These are professionals who choose gambling games with the maximum cashback, play according to the optimal strategy, resort to additional tricks and try to get the maximum benefit from all the casino’s promotions.

    For a long time, a professional often stays in the black, so he is not entitled to cashback. But for one day, a week, or even a month, he may be the loser. Accordingly, he is entitled to expect a refund. This helps him to get a mathematical advantage over the casino for a long time.

    Understanding this, operators can prioritize advanced players. Such probable options can be spelled out in the rules, but most often it’s found in a paragraph like: “Presence administration is refusing cashback to a player on its own initiative.”

    However, there have been many cases in the history of gambling when cunning customers received huge amounts of cashback, taking advantage of imperfections in the rules of promotions.

     

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    Kristaps Gauja kristapsgauja

    Kristaps is an expert in the field of online casinos. Over time he has found himself as a gambling critic and analyst.

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